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Hugo in HTO Trading,

Gold: Made a new 2016 high

Since the beginning of the year the commodity gained more than 28.0% and last week rose beyond 1.5% plus is in a bullish phase since start of June.

Last week the precious metal initially rose with a wide range and close in the green, near the high of the week, in addition closed above the previous week high, suggesting a strong bullish momentum.

Stochastic is showing an overbought market although is still displaying strong bullish momentum.

Expecting an upward move to a weekly resistance zone at 1,433.60 on a break above the previous week at 1,375.11 (scenario 1) and a bounce from weekly resistance at 1,433.60 may drag down the precious metal to the lower end of the daily resistance at 1,395.00 (scenario 2). But a break below the previous week low at 1,335.34 may trigger a sell down to a weekly support at 1,307.45 (scenario 3).